Making profit as a used car dealer in the bay area

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Transcript of Making profit as a used car dealer in the bay area

Page 1: Making profit as a used car dealer in the bay area

Don’t let these great opportunities pass you by! To get signed up at NO UPFRONT

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Making profit as a used car dealer in the Bay Area

Welcome to Dealerdirect, USA,

We are looking to partner with you and your business. The simple truth is that we

can consistently hook you up with cars at auction prices or lower with no

obligation, subscription or upfront fees so you can focus on moving your

inventory. If this is something you are interested in, by all means, please continue

reading.

In this newsletter, I want to briefly explain to you three overlooked most profitable factors

in car trading.

Simplifying car buying for car dealers

Life is pretty complicated, but buying cars can be simple. Obviously, there are many

factors that one could consider (timing, market, holding costs, location, target

demographic, etc.), but there are three main factors that outweigh all others. The first is

selling price. Almost every experienced used car dealer or car trader I come into contact

with can be told the basic information of any running car (make, model, mileage, exterior

/ interior condition), and they can tell me within a couple of hundred dollars of what that

car will sell for on their lot. Of course there are retail guides like MMR and Kar Power,

but we all know that these are guides none-the-less. Since half of a dealer’s

responsibility in regards to making a profit involves making good buys, a car dealer has

to sift through and assess the value of hundreds, if not thousands of cars each week.

This requirement naturally develops a junk car buyer savvy to quickly understand what

the selling price of any car truly is.

Making high profit on used cars at auction

The second main factor in buying cars is purchase price. This may sound obvious, but

bear with me for a moment while I challenge the status quo. Some dealer’s think it is

most profitable for their business to buy cars consistently considerably less than

standard auction prices. They search, hunt, grind, and bid until they can purchase a car

Page 2: Making profit as a used car dealer in the bay area

Don’t let these great opportunities pass you by! To get signed up at NO UPFRONT

COSTS visit www.carcashauction.com/dealer_signup. Our trained staff is waiting to

show you LIVE INVENTORY at 1-855-227-2274.

at an unbelievably low price. They then brag to their friends and associates of how low

the car was purchased. Although this may seem like a solid business strategy, buying

low is not the only profitable factor in car trading.

Moving used cars

The third and often overlooked and offsetting factor when considering purchase price

and overall profit, is a dealer’s overall ability to move inventory. For example, it would be

more profitable for a dealer to purchase and move 50 cars in a month at an average

profit of $700 each, than 20 cars at an average profit of $1,200 a piece. Just think about

it: every junk car dealer has a finite amount of energy and focus. The most profitable

dealers understand the value in focusing time & energy on moving cars versus the

almighty-low purchase price.

The conclusion and summary tips, as promised, are simple:

1. Assess the value of cars quickly.

2. Purchase cars at reasonable auction prices.

3. Focus energy on moving inventory.

These three patterns will not only make you a more profitable business, but will allow

you to have peace knowing that your efforts are being maximized in their efficiency.

Don’t let these great opportunities pass you by! To get signed up at NO UPFRONT

COSTS visit www.carcashauction.com/dealer_signup. Our trained staff is waiting

to show you LIVE INVENTORY at 1-855-227-2274.